Monday, 28 March 2011

U.S. dollar, usually world’s safe haven, declining despite plenty of global turmoil

Neil Irwin
Washington Post
http://www.washingtonpost.com/business/economy/us-dollar-usually-worlds-safe-haven-declining-despite-plenty-of-global-turmoil/2011/03/24/ABlrFiRB_story.html

When the world is in turmoil, investors have usually had one automatic response: Put money into dollars, viewed as the global safe harbor.

But that’s not happening in this tumultuous year. Even with the Middle East in conflict, Japan in disarray after a series of disasters and Europe facing a debt crisis, the dollar has been gradually falling in value against other major currencies. Having fallen relative to the euro, pound and yen in recent months, the dollar is down 7 percent against a basket of six major currencies since Jan. 7 and 14 percent since June.

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